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Home » News » World Bank gives Kenya Sh45 billion for second phase of urban renewal project

World Bank gives Kenya Sh45 billion for second phase of urban renewal project

Last updated: May 7, 2024 2:39 pm
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President William Ruto has announced a boost for Kenya’s urban development efforts with a funding support of Sh46.5 billion from the World Bank allocated to the second phase of the Kenya Urban Support Programme (KUSP), launched on Tuesday.

President Ruto outlined that this phase aims to bolster urban areas’ capacity by enhancing settlement infrastructure across 77 municipalities spanning 45 counties. Emphasizing alignment with the administration’s affordable housing initiative, Ruto highlighted the program’s focus on infrastructure enhancement, stormwater management, and sanitation improvement.

Speaking on the dire conditions in Kenya’s 1,410 informal settlements characterized by inadequate road networks, sanitation, and electricity, Ruto underscored the program’s potential to decongest major cities by fostering alternative growth centers in counties.

Encouraging responsible fund utilization by county governments, Ruto stressed the need for maximizing benefits while emphasizing strategies to boost own-source revenue. He called for greater allocation of land to urban development initiatives, acknowledging the significant economic contribution of urban centers, which account for over 70 percent of the nation’s GDP.

Addressing the importance of sustainable financing for urban development, Ruto highlighted the significance of utilizing the World Bank’s funding responsibly, recognizing it as a loan obligation for the country.

With 300 urban areas identified for development, the program aims to invest in infrastructure expansion, connectivity enhancement, accessibility improvement, and safety measures across the 45 beneficiary counties.

Moreover, it aims to integrate refugees in Kakuma and Dadaab camps in Turkana and Garissa counties with host communities under the government’s Shirika plan, focusing on creating social amenities and improving access to essential services like road networks and water and sanitation facilities.

The first phase of the KUSP program covered 59 municipalities nationwide, setting the groundwork for comprehensive urban development initiatives across the country.

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